Understanding the Laffer Curve

Obama seems to think that it's FAIRER to tax the rich more.  However, taxing the rich TOO MUCH "kills the golden goose."  There comes a point where too much taxation actually results in LESS revenue for the government.

Understand this: there is a difference between more revenue and more taxation.  I think it is somewhat similar to my alma mater's ticket price on college football.  Right now, my team stinks.  If you want to fill the stadium with fans, lower the price, and in the long run you will actually get more REVENUE for the team.  In effect, the ticket price is kind of like a tax.

You can price yourself out of sales, and that is in effect what too high a tax rate does.  People fear and hold on to their cash because they do not know what the future brings.  In the meantime, it becomes a death spiral for the economy.  As long as we have people "in power" who think that it is better to raise taxes on the rich because it's "FAIRER," we'll all suffer.

"RICH" people produce jobs, they invest in building business.  This stimulates the economy much more than taking their money and giving it to people who help politicians get elected.  In turn, those whose businesses are stimulated by the spending of "RICH" people will turn around and buy more things themselves.  They'll go out to eat more, they'll spend more on tips, they'll buy that TV for their home that they've been putting off buying until things get better.

Do you want a better economy and a brighter future?  Make sure this wrong-headed president doesn't get re-elected.  He doesn't seem to understand what actually makes the economy better.  Either that, or he thinks that we're all getting what's coming to us.  Here's the reality.  The American people help people all over the world, because they care.  Liberals seem to think that America is an evil empire that deserves what's coming to it.  That seems to be why Obama takes the tack that he does in all his policies.  The reality is that the days of "imperialism"-that is, one nation conquering another to gain land-are over.  (And besides-America's biggest land gains were purchases such as the Louisiana purchase, and that of Alaska.)  America's empire is an economic one.  It used to be a spiritual one too.  When we get our heads screwed on straight spiritually, we'll probably get our economics in order too.


If you understand the Laffer Curve, you'll understand the tie between a decent TAXATION RATE and MORE REVENUE.  Then test it YOU LIBERALS OUT THERE and see for yourself. 

This article from National Review explains the Laffer Curve: 

http://www.nationalreview.com/corner/271013/re-reid-introduces-soak-rich-act-2011-mario-loyola